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Bridging loan calculator

Looking for a reliable bridging finance calculator in the UK? Find out how lenders work out the amount you can borrow here.

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 17th September 2019 *

Customers often approach us to enquire about bridging loans calculators, namely where they can find a reliable one and how lenders use these tools to draw up bridging finance quotes. We’ve put together this guide to bridging loan calculators in the UK to answer these questions and more, and you’ll find the following topics covered below…

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What is a bridging finance calculator?

A bridging finance calculator is a tool that lenders use to work out the quote they’d be willing to offer you for a bridge loan. Providers also use them to tally up how much interest to charge, and some use separate calculators for related products like bridging mortgages.

Bridging loan calculators aren’t exclusive to industry insiders. You can find free bridge loan calculators on lenders’ websites as well as other online financial hubs, including this one!

How does a bridging loan calculator work?

The lender inputs data such as the net amount you need to borrow, the term length and details of your deposit and security, and the calculator will return a quote based on this information, with the interest charges and other costs and fees factored in.

Some lenders use internal calculators to work out how much interest to charge you (always done on a case-by-case basis) and have separate tools for bridging mortgages.

What types of bridging loan calculators are there?

Every lender uses a different bridging finance calculator (dependent on how they calculate interest) which is why you might find some variation between the numbers they return. Some are multi-functional and can offer information about interest rates as well as quotes for the overall cost.

Calculators to calculate the cost of a bridging loan

These are calculators for tallying up the overall cost of a bridging loan, i.e. the full loan amount plus the accrued interest and the additional fees the borrower will need to foot, including legals, arrangement charges and valuation fees for the loan security.

Standard calculators will return a quote based on the core details of the deal, such as the amount of deposit you have, the term length and your exit strategy, but some lenders use more sophisticated calculators that take other variables into account.

More information about the costs and fees bridging loans involve can be found here.

Bridging loan rates calculators

A bridging loan rates calculator is a tool a lender might use to work out how much interest to charge you. They will feed in information such as your credit rating, how much industry experience you have and the viability of the investment to come up with an interest rate percentage that they feel reflects the level of risk they are taking on.

More information about the criteria lenders use to assess bridging loan applications is available from our dedicated bridging finance hub.

Bridging loan interest calculators

Some lenders use standalone calculators to work out how much the total interest on a bridging loan will be, and this will be based on a number of factors, including the term length, the rates you end up with and the type of bridging finance deal you take.

Interest on bridging loans is typically charged in one of three ways: monthly, rolled up and retained, and the total amount you will pay can differ across the board.

  • Monthly: Interest is calculated in exactly the same way as for an interest only mortgage. It’s charged monthly and the full loan amount is due at the end of the term. The lender will use a monthly interest bridging loan calculator to work out what rate to charge you.
  • Rolled up: The interest is added to the loan amount each month and compounded. The cumulative total is paid off at the end of the loan term.
  • Retained: The lender calculates the amount of interest due at the beginning of the term and bills the customer based on the number of months (or years) the loan is taken over. The combined total is due at the end, or earlier if the borrower chooses to pay up sooner.
  • Serviced: The lender lets the client pay the monthly interest, allowing them to leverage more out of the deal as the interest is no longer added, increasing the net loan to the client.

Bridging mortgage loan calculators

A bridging home loan calculator is a tool a lender might use if you’re using a bridging loan to buy a residential property and are planning to refinance the debt onto a traditional mortgage as the exit strategy. Some lenders will offer both products but it’s not unheard of to use separate lenders for the bridging finance and the mortgage you’ll later need.

To qualify for a bridging mortgage, you would need to meet the eligibility requirements for both a bridging loan and a mortgage, and some lenders will assess this separately, using a bridging loan calculator to give you an initial quote and a standard mortgage calculator to determine how much they’d be willing to lend you on a residential home loan.

You can read more about bridging mortgages here and find our page on mortgage calculators here.

How do I find the best bridging loan calculator for me?

Customers often ask us things like “where can I find the most accurate bridging loans calculator in the UK?” and there’s no definitive answers to this. As we mentioned earlier, all bridging finance lenders use different calculators (some far more sophisticated than others) and the quotes they return can differ, sometimes significantly.

To get a rough idea of how much you could borrow with a bridging loan, check out our calculator below. All you need to do is enter a few details to calculate the total monthly payments - try it now:

Bridging Loan Calculator FULL

Loan Information

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Why you should speak to a specialist bridging finance broker

Your best course of action is to speak to a whole-of-market broker. The advisors we work with can search the entire market to find the lender whose bridging finance calculator is most likely to return a favourable quote for a borrower with your needs and circumstances.

Where can I find a bridging loan calculator for Scotland?

Rates, criteria and the way quotes are calculated is usually the same for bridging loans in Scotland compared to the rest of the UK, although you’re likely to find postcode restrictions in some parts of the country, such as the Highlands and anywhere away from the mainland.

Make an enquiry and the advisors we work with will connect you with the lender whose calculator is likely to return the best rates for you and your project in Scotland.

Speak to a bridging finance expert

If you’re still looking for a bridging loans calculator in the UK and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.  – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 17th September 2019
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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